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Trial Balance of Leisure Hotels as at June 30 Debit Credit S 70,000.00 Issued 7% preference share capital $1 each Issued ordinary share capital
Trial Balance of Leisure Hotels as at June 30 Debit Credit S 70,000.00 Issued 7% preference share capital $1 each Issued ordinary share capital $1 cach 6% Debentures Share premium 150,000.00 250,000.00 50,000.00 Buildings at cost 550,000.00 Furniture at cost 70,000.00 Equipment at cot 60,000.00 Opening inventory 10,000.00 Accumulated depreciation Furniture 25,000.00 Equipment 20,000.00 Director's remuneration 50,000.00 Wages and salaries 252,000.00 Motor expenses 15,000.00 Rates and insurance Sales 12,000.00 590,000.00 Purchases 158,900,001 General expenses 20,000.00 Advertising 32,000.00 Audit fees 10,000.00 Debenture interest paid 2,100.00 Accounts receivables 13,000.00 Accounts payables 27,000.00 Bank Overdraft General reserve Dividend paid Retained profits as at the beginning of the year 15,000.00 30,000.00 5,000.00 33,000.00 1,260,000.00 1.260,000.00 Additional Information 1. Inventory counted and valued on 30 June amounted to $8,000. 2. Insurance includes $3,000 of cover that relates to the following year. 3. Wages owing at 30 June amounts to $5,000 4. A provision for bad debts is to be created at a level of 2% of debtors 5. It is the policy of the business to depreciate furniture at 10% per annum using the straight-line method. Equipment is to be depreciated at 20 per cent. 6. Corporation tax of $3,500 is to be provided for 7. The directors have proposed the following: Preference dividends are to be provided for $5,000 is to be transferred to a general reserve 6. Transfer of $3,000 to a general reserve account. 8. The authorised share capital of the company is 100,000 preference shares and 250,000 ordinary shares both having a nominal value of $1. 9. At the year-end the company issued to a private investor 50,000 additional ordinary shares at a premium of $1.75, the company receiving the money in full. The company used $50,000 from the issue of shares to pay off part of the debenture loan. Neither of these transactions has been accounted for. Required a) Prepare a statement of comprehensive income for the year ended 30 June b) Prepare a statement of changes in equity for the year ended 30 June c) Prepare a statement of financial position as at 30 June
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